IWG Ends Talks With Private-Equity Suitors

IWG PLC said Monday that it has informed each of Starwood Capital Group Terra Firma Capital Partners and TDR Capital that it won’t continue discussions regarding possible takeover offers because it believes none of the parties can currently deliver a deal at a price its board could recommend.

The coworking-and-workspace company said it remains confident in its long-term value and opportunities, and is focused on growing as an independent company.

Starwood and Terra Firma Investments said separately they don’t intend to make an offer.

IWG said that its pretax profit for the six months ended June 30 declined 33% in actual currency, and it expects its full-year result to be in line with its expectations.

The company said pretax profit was £54.3 million for the first half compared with £80.8 million for the year-earlier period, as it cited investments in infrastructure and talent, incremental marketing spend and weakness in the U.K. market.

Revenue rose 2.9%, or 7.1% in constant currency, to £1.20 billion but the company said it expects a short-term effect on revenue performance as several of its centers in key U.K. locations are currently being refurbished.

The board has declared an interim dividend of 1.95 pence a share, up from 1.75 pence a share for the year-earlier period.

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